The bill amends existing New Mexico tax law to allow the disclosure of taxpayer return information to the staff of the Legislative Finance Committee for the purpose of evaluating programs that have a fiscal impact on the state or its political subdivisions. A new section, 7-1-8.12, is introduced, which outlines the conditions under which this information can be shared, including the requirement for a memorandum of understanding between the department and the Legislative Finance Committee to ensure confidentiality. The bill specifies that only aggregated data from at least three taxpayers can be shared to maintain compliance with federal confidentiality standards, and that the staff receiving this information must complete training on protecting confidential data.

Additionally, the bill reinforces the confidentiality of taxpayer information by amending Section 7-1-8, which prohibits unauthorized disclosure of return information, and establishes penalties for violations under Section 7-1-76. The effective date for the provisions of this act is set for July 1, 2025. Overall, the bill aims to enhance the legislative evaluation process while maintaining taxpayer privacy and confidentiality.

Statutes affected:
introduced version: 7-1-4.2, 7-1-21
Final Version: 7-1-4.2, 7-1-21, 7-1-76